Agenda and minutes

Minutes of the Meeting held on (previously circulated) 

The minutes of the meeting held on 27th June 2007 were agreed and signed as a true and accurate record.

There were no declarations of interest.

The Principal Democratic Support Officer introduced a report requesting the Committee to consider their preferred meeting times for the municipal year 2008/09. The Committee in discussing the issue felt that their current meeting time of 6pm should be recommended to remain unchanged.

Resolved:

That the committee’s current meeting time of 6pm should be recommended to remain unchanged.

The Principal Democratic Support Officer introduced a report on behalf of the Head of Information and Customer Services. In introducing the report it was highlighted that performance had improved on response time on the previous year and also appeared to be improving in the current year. In the course of discussion members welcomed the report and noted that whilst there had been no findings of maladministration against the authority, it would be helpful for the committee to receive a brief synopsis of the ombudsman complaints the authority had received, the outcome and learning points form these.

Resolved:

1)         That the Ombudsman’s Annual Letter for 2006/07 be noted.

2)         That no comments be submitted to the Ombudsman on the Annual Letter for 2006/07 and that the Ombudsman not be invited to provide a presentation not be pursued at this time.

3)         That the committee receive a brief synopsis of the Ombudsman complaints the authority has received in 2006/07, including the outcome and learning points from these.

Mike Tye (Audit Commission) introduced a report setting out the findings of the Audit Commission as the Council’s external auditor with regard to the Statement of Accounts 2006/07. It was reported that they were a good set of accounts and that Financial Services had done well to produce them in the short timescale that was now required by legislation.

The committee queried the background to the two adjustments that had been made to the financial statements and it was outlined that in order to comply with the new presentational format of the accounts it had been necessary to restate the 2005/06 accounts in the current format and in doing so £5.1 million had been incorrectly analysed between Local Authority Housing and Other Housing Services categories. On the second adjustment It was confirmed that in relation to non-domestic rates incorrect accounting information had been produced with regard to the collection fund, which whilst not affecting the Council’s bank reconciliation had resulted in the wrong information be presented.

Resolved:

1)         That the annual governance report for 2006/07 issued by the Audit Commission and the representations made by the Section 151 Officer be noted.

2)         That the Council place on record its thanks to Financial Services.

The Section 151 Officer outlined that at the last meeting the Audit Committee had approved the Statement of Internal Control and Corporate Governance; however since then whilst the Chief Executive, Section 151 and Monitoring Officers had all signed the approved Statement, the Leader of the Council had not signed the Statement suggesting that the Audit Committee may wish to amend the statement with the inclusion of the following text in paragraph 5 of the document.:

‘Following the Council meeting on 20^th June 2007 a further process has been introduced to ensure that Members are formally briefed on all the risks and implications involved in the event of a Motion to Council’.

The Principal Democratic Support Officer advised Members that if Members were minded to amend the Statement of Internal Control and Corporate Governance,the proposed wording would need to be amended, as the Committee did not have constitutional authority to introduce a process to the Council Procedure Rules, but could propose an amendment to the Council Business Committee, who had the authority to amend the Council Procedure Rules.

Members discussed the issue in some depth; however felt that they could not form a conclusion before deciding whether or not to recommend an amendment to the constitution.

Resolved:

1)         That this item be adjourned pending discussion of the proposed constitutional amendment in respect of formalisation of briefings on motions on notice.

The Principal Democratic Support Officer introduced a report that had been requested to enable the Audit Committee to consider whether a formal process should be introduced to include an officer briefing note alongside all Member motions. It was outlined that it was custom and practice on receipt of any Notice of Motion for officers to consider any implications for the Council and where necessary to provide a briefing note to accompany the motion on the agenda, covering any risks and the opportunity for Members to question the relevant Director prior to debate. The Principal Democratic Support Officer highlighted that regardless of any decision on whether to amend the constitution officers had a duty and would continue to advise meetings of potential risks and issues with regard to issues that they are making decisions on.

Members discussed the merits in amending the constitution and after much debate it was proposed by Councillor Smith and seconded by Councillor Leytham that: ‘The constitution be amended as set out in the report. On being to the vote, the motion was carried 4 in favour, 1 against and two abstentions.

Resolved:

That a new Council procedure Rule 15.3 as set out below (with the subsequent re-numbering of paragraphs 15.3 and 15.4) be agreed for recommendation as a constitutional amendment to the Council Business Committee.

’15.3    Officer Briefing Note

Where a Motion for which Notice has been given is included on the Agenda, an officer briefing note will be included on the Agenda to accompany that motion setting out in particular any key risks and potential financial and legal implications for the Council should the proposed motion be carried.’

The Committee noted that it had agreed to recommend that the Constitution be amended to formalise the position of briefing notes on motions on notice at full Council (Minute16 refers).

In the course of discussing the issue it was considered that whilst it was felt appropriate to formalise the arrangements for the future in terms of briefing notes, the Committee did not feel that the current informal arrangements represented a significant control weakness worthy of disclosure in the Statement itself.

The committee therefore felt that in considering this on balance the Statement of Internal Control and Corporate Governance for 2006/07 should not be amended.  

It was proposed by Councillor Burns, seconded by Councillor Smith that:

“That in light of the Committees proposal that the constitution be amended to formalise the position of briefing notes on motions on notice at full Council, the Statement of Internal Control and Corporate Governance should not be amended”

Resolved:

That in light of the Committees proposal that the constitution be amended to formalise the position of briefing notes on motions on notice at full Council, the Statement of Internal Control and Corporate Governance should not be amended.

(Councillor Johnson left the meeting)

Mike Tye (Audit Commission) introduced two reports setting out the results of reviews undertaken with regard to IT risk assessment and Your Business at Risk.  Members asked a number of questions on the reports and in the course of discussion it was suggested that it would be helpful if further work could take place to assist with energy efficiency in ensuring computers were turned off each night. The Internal Audit Manager agreed to investigate how this might be achieved.

Resolved:

1)         That the Audit Commission reports and action plans be noted.

2)         That the Internal Audit Manager investigate how further work could take place to assist with energy efficiency in ensuring computers were turned off each night.  might be achieved.

Andrew Mee (KPMG LLP) introduced the proposed Audit and Inspection Plan for 2007/08, it was noted that whilst KPMG LLP were the appointed external auditors there would still be a role for the Audit Commission including the Corporate Performance Assessment and Direction of Travel assessments. In particular the Committees attention was drawn to a review of the Medium Term Financial Plan and a cross cutting review of health inequality.

Resolved:

That the plan be noted.

The Internal Audit Manager introduced a report which set out the measures that the Council should adopt in order to comply with the National Fraud Initiative. It was noted that this work would involved quite extensive data matching. The committee noted the report and the requirements which it placed upon the Council.

Resolved:

1)         That the report be noted and endorsement given to the proposed arrangements to comply with the National Fraud Initiative (NFI) as set out in the report and to the follow up of and investigation of matches arising form the NFI.

2)         That the Head of Financial Services be appointed as the ‘Senior Responsible Officer for NFI purposes with responsibility for ensuring compliance with the Code of Data Matching Practice’ and that the Principal Auditor be named as the Council’s key contact with the NFI for all future data matching exercises.

3)         That the Council’s Financial Regulations and Procedures be amended in order to formalise the approach to future NFI exercises.

4)         That following formalisation of the Council’s NFI arrangements, the Information Management Group considers the proposed procedures with a view to inviting the Information Commissioner to review these for the purposes of monitoring compliance with data protection principles.

The Internal Audit Manager introduced the Internal Audit Plan and Monitoring for the current year. The Committee noted the allocation of audit days and the proposed audit coverage.

Resolved:

That the report be noted.

The Head of Financial Services introduced a report setting out proposed revisions to the contract procedure rules in line with recent developments with regard to project and capital programme management, outlining the key proposals. In the course of discussion it was suggested that the text should be checked to ensure that all abbreviations were in the first instance set out in full.

Resolved:

1)         That approval be given to the update of Financial Regulations and Procedures relating to capital schemes as set out in the annexes to these minutes.       

2)         That the Head of Financial Services be delegated amend the Financial Regulations and Procedures to ensure that all abbreviations are in the first instance set out in full.

The Principal Democratic Support Officer introduced a report setting out revised Terms of Reference for the Budget and Performance Panel which the Panel had resolved to recommend for adoption in order to assist them in providing scrutiny in these two areas of importance for the Council.

Resolved:

That Council be recommended to adopt the Terms of Reference of the Budget and Performance Panel as set out in the annex to these minutes.